Northern Ireland health minister Edwin Poots has announced major funding for a new hospital in Omagh, County Tyrone.

He said that £75m will be made available for the first phase of the new facility, which will include a health and care centre with GP accommodation and intermediate care beds. It will also have a renal dialysis unit and a new central sterile supplies department.

The government explained that the money being spent on the project is in addition to the £25m already invested in the project to acquire the land and to undertake some of the enabling works. It hopes that further enabling works will begin immediately with construction starting in 2013, and the first phase of the new hospital expected for completed during 2016.

Further phases of the project are also planned, which will include mental health and learning disability provision, an ambulance station and office accommodation.

Commenting on the announcement, Poots said: "The progression of this scheme is important for the people of Omagh and will assist in the delivery of key services in a community setting and in a safe environment for both patients and staff."

He added: "It is great news for the local community that the first phase of this new facility is well and truly on the way. It is particularly pleasing to progress enhanced local hospital and the health and care centre element of this project which will provide first class accommodation for local delivery of services."

Gerard Guckian, chairman of the Western Health and Social Care Trust, welcomed the move and said that it had been involved in extensive planning for the project for quite a while and had been "eager to move forward with it".

"I am delighted that the minister's commitment now will allow construction of these modern and much needed health care facilities in the enhanced local hospital for Omagh to commence," he said.